Tax & Spending
- Promises to reduce taxes “once we’ve gripped inflation” – saying it is a matter of when not if
- Pledges to cut basic rate of income tax by 1p in April 2024 and a further 3p by the end of the next Parliament
- Also pledges to scrap 5% VAT rate on household energy for one year if the price cap on bills rises above £3,000 for the typical household
- Says public sector pay deals should be decided by independent pay review bodies
- As chancellor raised National Insurance by 1.25p in the pound to pay for health and social care but also raised the earnings level at which it starts to be paid to £12,570
- Also announced plan to increase corporation tax from 19% to 25% in April 2023
- Promises to maintain defence spending and says we should view current minimum level of spending 2% of GDP “as a floor, not a ceiling”
For starters …